A Rise in Property Investor Loans for July 2015
As the banks are trying their level best to keep investor lending on track, but the APRA released figures that showed that the loans keep on rising for July month too.
Monthly banking stats by APRA show that $539.5 billion were recorded in the month of July 2015, a 22.8% increase from the past year. APRA is making the rules strict to cool down the investor lending also the experts were also expecting the figures to slow down but the results are not favourable.
AMP Capital chief economist Shane Oliver said, “APRA had indicated was planning to tighten the rules for investors in the months leading up to July, though he pointed out higher interest rates for those buyers weren’t introduced until that month and there is a lag effect on the data. APRA is determined to see investor lending slow. The measures didn’t get aggressive until July – there will be more to come”.
There is a huge difference in the rise figures of investor loans and owner occupied loans. In the last month the investor loans got a rise of 19%, whereas owner occupied loans got a rise of 2.5%.
Finder.com.au representative Michelle Hutchison said – Out of 30 banks monitored by APRA, 26 had increased their investment lending over the year to July. However, Domain Group senior economist Andrew Wilson was not surprised that investor numbers were yet to be reined in.
Loan figures by APRA in the last months are as follows:
$833.4 billion – owner occupied
$439.2 billion – investor loans
$866.8 billion – owner occupied
$507.4 billion – investor loans
$827.7 billion – owner occupied
$539.5 billion – investor loans
News Source: http://www.domain.com.au/news/apra-figures-yet-to-show-signs-of-investor-slowdown-20150831-gjbbas/